Marketable Surplus and Market-Arrivals in APMC Yards

8/13/2019 Marketable Surplus and Market-Arrivals in APMC Yards

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Sequence of presentation

1. REGULATED MARKETS IN INDIA2. PRODUCER SURPLUS

3. TYPES OF PRODUCER SURPLUS

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INTRODUCTION

The origin of regulated markets in India datesback to 1864.

150 regulated markets at the time ofindependence.

Number has increased to the 6,251 by 1990.

Currently, 6261 Wholesale Markets in India(majority are regulated markets).

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20870 Rural Primary Markets (about 15% are

regulated markets).

Total27131

2459 Principal Regulated Markets

5006 Regulated Market Sub-yards

Total

7465

(Only 286 regulated markets in 1950)

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The regulated markets are established toavoid the proverbial exploitation of farmersby the traders and their middle men.

To develop the necessary marketingfacilities and fair practices

To create competitive marketing conditionsamong the traders

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Contd

To provide remunerative high prices as wellas safeguard the farmers against various

malpractices in the markets and

To create the requisite environment for

efficient marketing of the agriculturalproduce.

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Objectives Regulated Markets

1. To ensure reasonable gain to the farmers by creating

environment in markets for fair play of supply and

demand forces,

2. To regulate market practices and attain transparency

in transactions

3. Aimed at providing proper method of sale, correct

weighment, prompt payment and various marketing

related services

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4. Democratic set up to control and manage markets

5. Advent of regulated markets has helped in

mitigating the market handicaps of producers/

sellers at the wholesale assembling level

6. Achieved only limited success and Rural Periodic

Markets in general, and the tribal markets in

particular, remained out of its developmental ambit.

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Constraints in Agricultural Marketing

Small size of land holding

Lack of infrastructure

Limited access to the market information

Lack of fair price discovery mechanism

Multiple channels of distribution

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contd..

Multiple and exploitative intermediaries lowreturns

Fragmented supply chain, poor cold chain & highpost-harvest losses

Lack of cleaning, grading, packaging & quality

certification facilities

Limited access to market information andmarketing opportunities available

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Initiative of Market Reforms

Amendments in APMC Acts suggested by Expert

Committee on Market Reforms constituted by the

Ministry of Agriculture (Report in June, 2001)

Expert Committee recommendations discussed in the

National Conference of State Agriculture Marketing

Ministers on 27.09.2002

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Contd

Standing Committee of State Agricultural Marketing Ministers

constituted under the Chairmanship of Union MOS (A) met &

resolved to implement reforms in 2003

Committee headed by Additional Secretary (AM), GOI

including State Representatives set up to draft a Model Law for

Agri-Marketing

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Model APMR Act finalized on 09.09.2003 by theCommittee and circulated to States by CentralGovernment

Model Rules based on the Model Act circulated toStates by the Ministry in November, 2007

NDC has resolved on 29th May, 2007 forcompletion of amendments in APMC Acts andnotification of Rules there under by March, 2008.

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PRODUCERS SURPLUS

Producers surplus is the quantity whichmade available for to the non-producingpopulation of the country.

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Agriculture production expands determinesthe pace of agriculture development, whilethe growth in the marketing Surplus

determines the pace of economicdevelopment.

The larger the production of the commodity,the larger the surplus of that commodityand vice-versa.

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Types of Producers Surplus

1. Marketable surplus.

2. Marketed surplus.

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Marketable surplus

The Marketable surplus is the residual left with theproducer-farmer after meeting his requirements.

The Marketable surplus is the total quantity ofarrivals in the market out of the new crop.

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Marketable surplus

Marketable surplus as follows:

MS= P-C

Where

MS= Marketable surplus

P = Total production, and

C = Total requirements (consumption)

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Marketed surplus

Marketed surplus is that quantity of theproduce which the producer-farmer sells in

the market, irrespective of his requirementsfor family consumption, farm needs andother payments.

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Relationship between Marketed

Surplus and Marketable surplus

The Marketed surplus may be more, less or

equal to the marketable surplus, dependingupon the condition of the farmer and type ofthe crop.

Marketed Surplus Marketable surplus=

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The relation between Marketed Surplus

and Marketable surplus may be stated asfollows:

1. Marketed Surplus is more than the

Marketable surplus when the farmerretains a smaller quantity of the crop thanhis actual requirement for the whole family

and farm needs.

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2. Marketed Surplus is less than theMarketable surplus when the farmerretains some of the surplus produce.

This situation holds true in followingcondition:

a) Large farmers generally sell less than themarketable surplus because of their betterretention capacity.

b) Farmers may substitute one crop foranother crop either for family consumptionpurpose or for feeding their stocks because

of variation in prices.1/29/2014 22


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3. Marketed Surplus may be equal to theMarketable surplus when the farmerneither retains more nor retains less thanhis requirement.

This holds true in perishablecommodities.

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Marketed and Marketable surplus

These helps the policy-makers as well asthe traders in the following areas:

1. Farming sound price policies.

2. Developing Proper Procurement andPurchasing strategies.

3. Checking undue Price Fluctuations.

4. Decisions related to the export and export.

5. Development of transport and Storagesystem.

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Factors affecting Marketable surplus

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1. Size of holding

2. Production

3. Price of the commodity

4. Size of family

5. Requirement of seed and feed

6. Nature of commodity7. Consumption habits


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CASE STUDY

Farm of Mr. Jagdish

DATA GIVEN : Quantity sold

120 quintals of Wheat

15 quintals of barley

48 quintals of mustard

40 quintals of gram

60 quintals bajra

1/29/2014 26Agril. Marktg. in India, S.S. Acharya N.L. Agrwal


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Total production and the requirements

of the farm and family are shown as:

Crops Areaundercrop(Ha)

Productivity(Qtl/Ha)

Seedrequirement(Qtl)

Consumptionrequirementper adult unit(Qtl)

Requirementfor Artisansand others

Wheat 8 20 6.0 2.00 2

Barley 2 12 1.0 0.50 -

Mustard 5 10 0.4 0.10 -

Gram 5 10 2.5 0.25 1

Bajra 15 6 3.0 1.00 -

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Crop TotalProduction(Area xProductivity)

Seedrequirem-ent

ConsumptionrequirementNo. of units xrequirementper unit

Otherrequirement

T0otalrequirement

Wheat 8 x 20 = 160 6.0 6 x 2.0 = 12.0 2.0 20.0

Barley 2 x 12 = 24 1.0 6 x 0.5 = 3.0 - 4.0

Mustard 5 x 10 = 50 0.4 6 x 0.1 = 0.6 - 1.0

Gram 5 x 10 = 50 2.5 6 x 0.25 = 1.5 1.0 5.0

Bajra 15 x 6 = 90 3.0 6 x 1.00 = 6.0 5.0 9.0

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Crop TotalProduction(Qtls)

Totalrequirement(Qtls)

MarketableSurplus(Qtls)

Marketedsurplus(Qtls)

As percentage ofproduction

MarketableSurplus

Marketedsurplus

Wheat 160 20 140 120 87.50 75.00

Barley 24 4 20 15 83.33 62.50

Mustard 50 1 49 48 98.00 96.00

Gram 50 5 45 40 90.00 80.00

Bajra 40 9 81 60 90.00 66.67


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Marketed Surplus of Important Agricultural

Commodities in Various States in India

Group of Crops Crops Per cent2003-04 2004-05

1 2 4 5Food grains : Cereals 1. Rice 75.19 71.37

2. Wheat 67.69 63.33

3. Maize 73.26 76.22

4.Jowar 62.50 53.44

5. Bajra 56.95 69.396. Barley 43.40 56.05

7. Ragi 37.33 57.74

Vegetables 1. Onion 99.78 82.91

2. Potato 75.71 85.001/29/2014 30


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Growth Rates of Production of Principal Crops in

India from 2005-06 to 2009-10

-50.00

-40.00

-30.00

-20.00-10.00

0.00

10.00

20.0030.00

40.00

50.00

60.00

2005-06 2006-07 2007-08 2008-09 2009-10*

Rice

Wheat

Ragi

(Base: T.E.1993-94 = 100)

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Area, Production and Yield of Wheat in

India (2004-05 to 2009-2010 )

YearArea

(Million

Hectare)

Production(Million

Tonne)

Yield(Kg./

Hectare)2004-05 26.38 68.64 2602

2005-06 26.48 69.35 2619

2006-07 27.99 75.81 2708

2007-08 28.03 78.57 2802

2008-09 27.75 80.68 2907

2009-10 28.52 80.71 2830

Source : Ministry of Agriculture, Govt. of India.1/29/2014 32

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Arrivals of wheat in Markets of Major Producing States During

2005 to 2008 (Qty)

STATESYEAR

2005-06 2006-07 2007-08

Haryana 3947470 4593091 7574231

Uttar Pradesh 1556179 1789734 1810198

Bihar 1237230 1451383 1081550

MP 1164824 1377355 9061322

Punjab 793000 9698000 10579000

Rajasthan 789329 1037531 923467

Uttaranchal 308629 282312 320866

Maharashtra 283393 194678 N.A

Karnataka 16488 33743 54569

Jharkhand 21919 20596 10969

Delhi 160390 315260 863301/29/2014 33www. agmarknet.nic.in

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District-wise Area, Production and Yield of Wheat in

Karnataka(2004-2005)

DistrictArea

(in hect.)

Production

(in tonne)

Yield

(tonne/hect.)Bagalkot 21202 32903 1.55Belgaum 56811 59112 1.04Bellary 848 768 0.91Bidar 7373 4546 0.62Bijapur 49116 44599 0.91Chikmagalur 6 9 1.5Chitradurga 658 932 1.42Davangere 316 383 1.21Dharwad 39502 21470 0.54Gadag 36348

24519

0.67

Gulbarga 16517 11494 0.7Haveri 783 433 0.55Koppal 9762 4371 0.45Mandya 3 1 0.33Raichur 2746

756

0.28

Source : Ministry of Agriculture, Govt. of India.

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Marketable and Marketed Surplus of Wheat

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Commodity/state/Particulars

Marginal Small Medium Large Over all

Wheat

Uttar Pradesh

ML -11.0 48.1 52.7 64.0 45.7

MD 17.1 22.7 48.6 68.0 42.2

HaryanaML 32.0 50.0 65.0 63.0 62.0

MD 38.9 60.8 76.9 67.1 70.7

PunjabML 61.3 70.1 80.7 88.1 83.1

MD 54.2 62.3 91.8 91.1 87.2

RajasthanML -31.2 0.8 47.1 41.4 32.9

MD 18.5 13.7 53.2 49.7 49.1

All IndiaML 4.1 49.6 61.4 70.8 59.7

MD 23.5 32.3 62.3 73.0 58.9

Source: DMI, GOI, Faridabad,1995ML- Marketable surplus, MD- marketed surplus


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TOTAL FARM FAMILY REQUIREMENT AND MARKETABLE SURPLUS OF

PADDY.(AVERAGE 1996-97, 1997-98 and 1998-99)

SL.No.

Category Totalproduction

A

Total farm family

requirement including

lossesB

Marketablesurplus(A-B)

(1) (2) (3) (4) (5)

1. Small 52020.67 28619.76(55.01)

23408.91(44.99)

2. Medium 36672.35 15268.70(41.64)

21403.65(58.36)

3. Large 33569.27 10576.83(31.51)

22992.44(68.49)

Total 122270.29 54465.29(44.54)

67805.00(55.46)

(000 tonnes)

1/29/2014 37Source: Ministry of Agriculture DMI Nagpur (2002)


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MARKETABLE SURPLUS OF PADDY(AVERAGE 1996-97, 1997-98 and 1998-99)

SL.No

.

Category

Totalproduction

A

Total farmfamily

requirement

includinglosses B

Marketablesurplus

(A-B)

Marketedsurplus

Qty. % Qty. % Qty. %

1. Small 52020.67 28619.76 55.01 23408.91 44.99 22778.45 43.78

2. Medium 36672.35 15268.70 41.64 21403.65 58.36 19619.09 53.49

3. Large 33569.27 10576.83 31.51 22992.44 68.49 21144.11 62.99

Total 122270.29 54465.29 44.54 67805.00

55.46 63541.65 51.97

(000 tonnes)



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Production, Marketable Surplus and Marketed Surplus of Paddy

(Qantity in '000 tonnes and percentage of total production)

Production 122270.29 (100.00%)Marketable Surplus 67805.00 (55.46%)

Marketed Surplus 63541.65 (51.97%)

0

20000

4000060000

80000

100000

120000

140000

Production Marketable

Surplus

Marketed

Surplus

Paddy

Production

Marketable SurplusMarketed Surplus

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STATE-WISE BREAK UP OF PRODUCTION, FARM FAMILY REQUIREMENT,

MARKETABLE SURPLUS AND MARKETED SURPLUS OF PADDY.

(AVERAGE 1996-97, 1997-98 and 1998-99)

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MARKETABLE SURPLUS RATIOS OF FOODGRAIN


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MARKETABLE SURPLUS RATIOS OF FOODGRAIN

CROPS

S. No. Commodity Marketable

surplus ratio(Percentage)

Year of which data relates

1. Rice 32.2 Market Report 1951

2. Wheat 37.8 Marketing Report1957-58 and 1958-59

3. Jowar 29.6 N.A.

4. Bajra 27.2. N.A

5. Barley 28.0 N.A.

6. Maize 38.5 N.A.

7. Ragi 18.2 N.A.

8. Gram 45.2 N.A

9. Arhar 62.4 Marketing Report 1956-57

10. Urad 63.5 -

11. Masoor 28.8 -

12. Moong 60.7 -Source: Directorate of Economics and Statistics,19761/29/2014 42

MARKETABLE SURPLUS RATIOS OF SELECTED


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MARKETABLE SURPLUS RATIOS OF SELECTED

CEREALS

Sl.No.

Commodity Marketablesurplus ratio(Percentage)

Year ofreference

Year ofpublication

of report

1. Paddy 8.87 1972-73 1979

2. Wheat 65.10 1973-74 1986

3. Jowar 33.14 1974-75 1984

4. Bajra 36.31 1974-75 1985

5. Maize 30.86 1974-75 1987

1/29/2014 43Source: National survey , DMI, 1972-73


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Marketed Surplus of Paddy in Haryana

Category offarmers

Marketed surplus(% to production)

Marginal 90.82Small 90.73

Semi medium 94.39

Medium 96.39Large 98.14

Total 96.31

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MARKETED SURPLUS OF RAGI

(AVERAGE 1996-97, 1997-98 and 1998-99)

S.No. Contribution States

1. More than 400 Karnataka (426.05)

2. 50-400 Andhra Pradesh (84.05)

Tamil Nadu (62.69)

3. 10-50 Uttar Pradesh (33.73)Maharashtra (27.12)Orissa (15.56)

4. Less than 10 Gujarat (3.52)Madhya Pradesh (0.61)

(000 tonnes)

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Production, Utilisation and Marketable Surplus of Ragi

(Qantity in '000 tonnes and percentage of total production)

0

500

1000

1500

2000

2500

EstimatedProduction

EstimatedUtilisation

EstimatedMarketable

Surplus

Estimated Production

Estimated Utilisation

Estimated MarketableSurplus

Estimated Production 2282.84(100.00%)Estimated Utilisation 1612.72(70.64%)Estimated Marketable Surplus670.14(29.36%)

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TOTAL FARM FAMILY REQUIREMENT AND ESTIMATED


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TOTAL FARM FAMILY REQUIREMENT AND ESTIMATED

MARKETABLE SURPLUS.

(AVERAGE 1996-97, 97-98 and 98-99).

SL.No. Category TotalproductionA

Total farm-familyrequirementincludinglossesB

Marketablesurplus(A-B)

1. Small 844.01 648.59(76.85) 195.42(23.15)

2. Medium 671.14 441.74(65.82)

229.40(34.18)

3. Large 767.69 522.37

(68.04)

245.32

(31.96)Total 2282.84 1612.70

(70.64)670.14(29.36)

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MARKETABLE SURPLUS OF RAGI


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MARKETABLE SURPLUS OF RAGI

(AVERAGE 1996-97, 97-98 and 98-99).

SL.

No

Category Total

productionA

Total farm-

familyrequirement

includinglosses

B

Marketable

surplus(A-B)

Marketed

surplus

Quantity

% Quantity

% Quantity

%

1 Small 844.01 648.59

76.85 195.42 23.15 186.26 22.07

2 Medium 671.14 441.74

65.82 229.40

34.18 225.57 33.61

3 Large 767.69 5222.37

68.04 245.32 31.96 241.51 31.46

Total 2282.84 1612.

70

70.64 670.14 29.36 653.34 28.62

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STATE-WISE BREAK UP OF PRODUCTION, FARM FAMILY

REQUIREMENT, MARKETABLE SURPLUS AND MARKETED SURPLUS OF RAGI.

(AVERAGE 1996-97, 97-98 and 98-99).

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The startling fact to be noted here was that the states like Andhra Pradesh had morethan 60 percent marketable surplus. In states like Karnataka, Orissa and Tamil Nadu,the marketable surplus was more than 20 percent

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RETENTION OF RAGI BY FARM

HOUSEHOLDRagi is retained for

i) Farm-family consumption,

ii) Consumption by permanent labour and temporarylabour engaged on the farm,

iii) Seed purpose,

iv) Animal feed,

v) Barter (now nearly disappeared) andvi) Payments in kind and cash for different purposes.

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Production Retention and Marketable Surplus of Rice and Wheat


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Production Retention and Marketable Surplus of Rice and Wheat

(Farm size-wise) in India During 1999-2000

Size group Production Feed and

seed

Family

consumption

Marketable

surplus (%)

Rice

Marginal 25.87 1.03 30.08 20.26

Small 21.58 0.87 9.53 51.81

Semi-medium 18.22 0.73 6.61 59.75

Medium 13.09 0.52 3.60 68.52

Large 10.73 0.43 0.78 88.69

All groups 89.49 3.58 50.60 39.46

Wheat

Marginal 16.94 1.86 20.31 30.88

(Million Tonnes)

Source : Various issues of CMIE Publications.1/29/2014 53Atteri,


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Marketable Surplus of Rice and Wheat and

Benefits of Storage to the Farmers in India

It was concluded that 60 per cent of the farmers aremarginal farmers and do not have marketable surplus.

In fact, marketable surplus of these farmers in respect ofrice and wheat in 1999-2000 was negative.

The small, semi medium, medium and large farmers hadthe marketable surplus in India.

The estimated marketable surplus with small, semimedium, medium and large farmers was 51.81, 59.75, 68.52and 88.69 per cent for rice and 8.74, 60.24, 71.53 and 85.00

per cent for wheat, respectively ignoring losses. The total estimated marketable surplus for all India was

39.46 per cent and 43.79 per cent for rice and wheat,respectively.

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D.S. Thakur AND A.S. Shandi

The Bihar Jn. Of Agri. Mktg.

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REASONS FOR LOW MARKET ARRIVALS STRATEGIES TO

PROMOTE ARRIVALS IN REGULATED MARKETS

REASONS ANDMARKETING PROBLEMS STRATEGIES

1. Regulated Market

yards are developedaway from the oldshops of traders fromthe town.

1. Sufficient investmentshould be done tomodern regulatedmarkets near the towns atcentral place.

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2. Traders purchase theproduce direct fromthe farmers in the

village or at their oldshops out side themarkets.

2. market committeeofficials should bestrong , and active toavoid such

malpractices.

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3. Generally, marketcommittees areweak with andincompetentofficials and staffplay in the handsof traders.

3. Sufficient financialsupport politicaland other must begiven. rules and actmust beimplemented.

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4. Lack of competition, 4. Market committee and


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4. Lack of competition,arrival of only 2-3 tradersin the regulated marketsat the time of action,

o payment of low prices,

o delay in unloading oftrucks and sale ofproduce at high rate ofcommission,

o Malpractices in Cleaning,weighing, grading andselling of produce.

o Delayed payment tofarmers and same priceoffers for different lots ofproduce.

4. Market committee andboard officials shouldremove these bottlenecks

which discourage marketarrivals.

private traders, co-operatives and Govt.agencies in the market

yards must beencouraged for forwardspiral of healthycompetition marketing

practices and prices all-around.

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5. Farmers remain at themercy of traders who

purchase bulk ofagricultural producein the market yards bypaying low prices with

no official coming tohelp the farmers.

5. Must imposerestrictions and

exercise control overtraders on buildingup stocks and unfairtrading practice,

avoid exploitation offarmers and ensureremunerative prices.

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6. Market committee doesnot ensure proper andquick sale of produce

Broad and committeesnot providing credit,storage facilities, rural-roads and transport

facilities.

6. The marketing board andcommittee must providefacilities for the benefit of

farmers so that farmerswill bring more and moreagricultural produce forsale in the regulated

markets.

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7. Farmers not aware of thebenefits and facilities of sale

in regulated markets. Market committee not

developing requiredrapport, awareness andbusiness relation with

farmers. Regulated markets should

also make available credit tofarmers on the basis ofpledge of their produce, asalready done in some states.

There is a need to supplyother inputs. Transportfacilities, market

intelligence .

7. There is a need for strongtraining of framers in all

aspects of regulatedmarkets and agriculturalmarketing.

Agricultural marketing tobuild a strong bond of

relationship, rapport andknowledge so that farmers

will bring all theirmarketable surplus to theregulated markets.

The field and market visitsof farmers should to beorganized

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Concluding remarks

The scope for large-scale increase in agriculturalproduction and arrivals in the regulated market infuture.

It is in fact the lack of efficient regulated marketspoorly.

The strategy of training of farmers, large-scaleinvestment in the providing requisite marketingfacilities, control over the scrupulous trading practices

of traders and strict implementation of the regulatedmarkets act as outlined above will at once marketarrivals in the regulated markets.

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Concluding remarks cont.. The state Govt. and chairpersons of the marketing

board and market committees must personally ensureand oversee that staff of the marketing board and

market committees work and act as the true servantsof the farmers and public at large.

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-A Case analysis

N. SaktivalDr. A. SelvaraJ

Financing Agriculture A National Journal of Agriculture & RuralDevelopment(2009)

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Distribution of Sample Responds

by the level of Significance

Level of

Significance

Number of

respondents

Percentage

Less Satisfied 36 18 %

ModeratelySatisfied

60 30 %

Highly Satisfied 104 52%Total 200 100 %

Performance of Satyamangalam regulated market, T.N.

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Problems faced by Farmers in


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Problems faced by Farmers in

Regulated Markets

Time consuming i.e., sale proceeding in regulatedmarket takes more time.

Lack of market news services.

Lack of transportation facilities. Lack of facilities for marketing of all agricultural

commodities.

Lack of amenities.

Lack of storage facilities for keeping all the agriculturalcommodities.

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D.P. MALIK, S.N. SINGH AND K.N. RAI

Journal of Agricultural Marketing

1992

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P d i C i M k bl d


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Production, Consumption, Marketable and

Marketed Surplus of Wheat and Paddy

Item Wheat Paddy

Total Stock 108.59 (100) 117 (100)

Total Production 94.70 (87.21) 103.72 (88.42)

Total consumption 29.43 (27.10) 10.49 (8.92)

Marketable Surplus 79.18 (72.90) 107.19 (91.08)

Marketed Surplus 73.91 (68.08) 101.60 (86.34)

Stock left at the endof the year5.27 (4.48) 5.59 (4.74)

in quintals

Note: Total stock includes current year production + receipts from other sources carry over stock + purchase made during the year.

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REFERENCES

Web: 1

.

India stat2.Ministry of Agriculture, Govt. of India.

3.Directorate of Economics and Statistics.

4. www. agmarknet.nic.inJournals: 1.Financing Agriculture A National Journal

of Agriculture & Rural Development(2009).

2.Journal of Agricultural Marketing.3.The Bihar Journal Of Agri. Mktg.

Book:Agriculture Marketing in India

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Marketable Surplus and Market-Arrivals in APMC Yards

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